The upcoming Brexit
The upcoming Brexit will expose Jaguar Land Rover to many challenges and unprecedented restructuring. Ranging from supply chain logistics and distribution of vehicles to the inflow of raw materials, the challenges would require due preparation. Jaguar Land Rover has expanded its operations globally and therefore, will be exposed to changes in import taxation and transportation of the inbound flow material challenges.
To prepare for the upcoming Brexit, Jaguar Land Rover should consider relocating its manufacturing plants i.e., Halewood, Solihull and Castle Bromwich, from the United Kingdom to the European Union. The relocation of the manufacturing plants would lead to many alternations in the supply chain. To redesign the logistics outsourcing strategy for the firm, the logistics service providers should focus on modifying its strategic policies. The inbound networks need restructuring to include line feeding, stock handling, and transport management. Moreover, Jaguar Land Rover should also consider moving its warehouses in response to the relocation of the manufacturing plants. The importance of relocating warehouses is to enhance efficiency and effectiveness, minimize the time taken while at the same time reducing the cost of production.
The company has operated in a zero-tariff and no customs control market, which has aided its survival. Therefore, the firm should enhance its component production capabilities and source its components locally to help mitigate the threat of trade barriers as a result of Brexit. Thus, in moving its manufacturing plants to Europe, Jaguar Land Rover should consider expanding its international presence in countries such as Australia and Slovakia with the objective of hedging against the trading conditions post-Brexit.
Besides, the firm should strive to modify its packaging design in tandem with the new mode of transportation. The company should partner with innovative and international packaging businesses to ensure minimal and insignificant damage to the delivery of parts.